Amazon, Costco hold up in coronavirus-driven stock market

CNBC’s Jim Cramer said that dominant U.S. companies are further solidifying their positions during the coronavirus pandemic, evidenced by the Nasdaq 100 being almost even for the year. 

“This is the big triumphing over the little guy and if you don’t mind making money in the market off that, that’s what’s going on,” Cramer said Tuesday on “Squawk on the Street.” “The companies that dominate in the Nasdaq are just, they’re killing companies.”

The “winner-take-all, loser-take-none” dynamic can explain the Nasdaq 100 being down less than 2% year to date, despite the Covid-19 outbreak bringing the U.S. economy to a near halt, Cramer said. 

The S&P 500, by contrast, is down about 12% for the year, even as it has steadily climbed higher from its coronavirus-driven low of 2,191 on March 23, which marked a decline of 35% from its February record. The S&P 500, as of Monday’s close, was just 18.6% off those highs.

Cramer said it’s hard to avoid the dominance of players such as Amazon, Costco and Microsoft when constructing a portfolio. All of those stocks are in the Nasdaq 100.

“If you look at Amazon, I never wanted Amazon to be 7% of my charitable trust but I don’t want to sell any Amazon. It’s fantastic,” the “Mad Money” host said.

Shares of Amazon hit a new all-time high Tuesday of $2,292, rising more than 5%. The stock closed Tuesday’s session at $2,283. 

The e-commerce giant, with a stock market value of around $1.1 trillion, has seen unprecedented demand during the pandemic as stay-at-home orders boost online shopping. Amazon stock is up about 23% in 2020.

Costco stock, up more than 4% on Tuesday, has risen about 6% year to date. Microsoft, which closed up nearly than 5% on Tuesday, is about 10% higher in 2020.

“There’s just an imbalance,” Cramer said. “There’s just some very big companies doing very, very well and a lot of other companies that are not.” 

Disclosure: Cramer’s charitable trust owns shares of Amazon, Microsoft and Costco. 

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